Apple today increased prices for apps in Canada and across the European Union to account for currency fluctuations. In a quick survey of the app store, I noticed prices are now $1.19 (instead of $0.99), $2.29 (instead of $1.99), and $3.49 (instead of $2.99), etc.
While Canada is not a huge market and pricing should not affect sales/revenue too dramatically for me as a developer, I still find the adjustment weird. It’s software, so there aren’t any additional costs to produce it – especially since the apps are already built and out there. I understand Apple has server and hosting costs to pay for, but I doubt these are located in Canada, so the cost hike seems strange to me. In addition, when the Canadian dollar was higher than the US for most of 2014, prices in Canada did not decrease, so this really seems to be just a cash grab. Coming on the heels of blockbuster sales numbers that Apple released for New Year’s Day, and it all seems even more cheap. Apple is not hurting for cash, by any means, but now it could cause the average user to think twice about purchasing an app, even though most are already a great deal as it is.
To read more, check out what a couple of my colleagues have said in the press: Globe and Mail | Finacial Post